March 21, 2024
Frequently Asked Questions and Answers after FY23 Q3 Earnings Announcement
OverallQ

In Q3, there were no share repurchases. Please explain how you plan to use the cash
and how you plan to return profits to shareholders.

AWe place the highest priority on investments that contribute to long-term growth, andin addition to internal investments, we actively search for opportunities for M&A. We
make decisions on the allocation of funds, including share buybacks, not necessarily ona quarterly basis, but on an annual basis, taking into consideration the balance between
investments. As in the past, our policy is to return surplus funds to shareholders withina certain period of time.

QIs there any impact from China's economic downturn and the anti-corruption campaign?

A

We have not been significantly affected by the economic downturn in China, but wecontinue to monitor the situation closely. On the other hand, the anti-corruption
campaign has mainly affected our endoscope business, and we will continue to monitor
the situation closely.

Eyeglass Lenses
QYou mentioned that sales of MiYOSMART (myopia management lens solution) have beenstrong, especially in the Chinese market, but will you be expanding to other regions?

A

Our product is presentalreadyin more than 30 countries, including European and Asiancountries. Although sales in the Chinese market remain significant, sales in some
European countries are growing. On the other hand, of the major markets, the U.S. andJapan have not yet been approved, and we will continue to work on the necessary
procedures.

Contact Lenses
QHow are sales of private brand (PB) products?

ASales contribution are growing steadily, accounting for more than 20% of daily lens sales.
In February 2024, we launched our fourth product, hoyaONE LUMINOUS.

Q

Will you continue to increase the number of stores in Eye City?

AWe expect to open new stores at a pace of 10 stores/year.

BlanksQ

What is the status of inventory adjustments at your major customers? Do you expect
demand to increase significantly after the inventory adjustment?

A

One of our two major customers is still adjusting inventories, but we expect inventory

adjustment to be largely complete by H1 of FY2024. Since we believe that development
activities for cutting-edge products are stable, we expect sales to increase in line withactual demand after inventory adjustment is completed.
Q

When do you expect to ship phase shift masks for EUV and mask blanks for High-NA?

A

Mass production of phase shift masks, which are scheduled to be introduced from 2nⅿ,
is expected in the second half of 2025. Currently, we are shipping small quantities for
initial R&D purposes, but we expect full-scale shipments to begin a little later. On theother hand, we are still in the process of proposing product specifications for mask blanks
for High-NA to our customers, and the timing of shipment has not yet been determined.

QIt seems that shipments of EUV lithography equipment will be somewhat at a standstillin 2024, but is there likely to be an impact on demand for blanks?

A

There is no doubt that exposure systems require masks and blanks, but in recent years
the correlation between the number of EUV exposure system shipments and the demandfor blanks has been somewhat diminishing, and therefore, increases or decreases in thenumber of units are unlikely to have a direct impact.

HDD Substrates
Q

What is the background to the upward swing in sales in Q3? When do you expect demand
to recover?

A

Inventory in hyperscalers has been cleared faster than expected, resulting in a significant
recovery in sales. We believe that the worst is behind us, and we will continue to see arecovery, with demand fluctuating slightly from quarter to quarter, using OctoberDecember 2023 sales of 3.5-inch substrates as a benchmark.

QMajor customers have announced the launch of products incorporating next-generation
technology, HAMR (Heat-assisted Magnetic Recording). What impact do you expect fromthe launch?

AAs for the status of the final product (HDD), please check the announcements of HDD
manufacturers. However, since glass substrates are essential for the commercializationof this technology, we expect that the range of products and HDD manufacturers thatuse glass substrates will expand.

Imaging
Q

Q3's performance was strong, what were the factors?

AThis was mainly due to a number of new mirrorless camera launches and strong demandfor interchangeable lenses for mirrorless cameras in line with a recovery in travel demand
after the pandemic.
-END-Forward-looking Statements
From time to time, we may make reference to or disclose information concerning our futureplans and forecasts.
All statements, other than statements of historical fact, may be considered forward-looking
statements and are based on management's assumptions and the information available to it
at the time the materials were prepared. These include, but are not limited to, foreignexchange and interest rates, international conditions, market trends and economic conditions,
thecompetitiveenvironment,

production

capacity,

futuresales/profitability/capital

expenditures/cash/other financial indicators, legal, political, or regulatory conditions, clinicalor research and development capabilities, customer behavior or business practices,
healthcare reimbursement systems, current problems with The Company may also beaffected by other factors, such as epidemics or health issues, including the current problem
of novel coronaviruses. We do not guarantee the accuracy or completeness of suchinformation. We also assume no obligation to update forward-looking statements as a resultof new information, future events, or otherwise.